LAFAYETTE, Ind. (July 22, 2003) — Wabash National Corp. has announced a definitive agreement for the sale of substantially all of the assets of its trailer leasing and rental, and wholesale aftermarket parts distribution businesses.
Wabash will sell these assets to Aurora Trailer Holdings LLC — a company formed by New York-based private equity investment firm Jefferies Capital Partners — for about $65-$70 million of which $55 million will be paid in cash upon closing. In addition, Wabash and Aurora have entered into long-term arrangements for the supply of parts by Aurora to Wabash’s factory owned branches and the supply of new and used trailers and maintenance services by Wabash to Aurora. The transaction is expected to close this fall and is subject to lender approval, buyer financing and Federal Trade Commission approval.
Commenting on the sale, Wabash senior vice-president and CEO Mark R. Holden said his company will record a $29 million asset impairment charge during the second quarter of 2003 to reflect the planned sale of these assets at below book value. Upon closing, all proceeds from this divestiture will go toward debt retirement which, including this amount will total approximately $90 million year-to-date.
Derek Nagle, who most recently served as president of Wabash’s trailer rental and leasing and aftermarket parts distribution businesses, will serve as president and CEO of Aurora.
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